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India’s RMG exports decline

The Tirupur Exporter’s Association has revealed that the exports of readymade garments from India declined by 9.18 per cent in June 2019 and 2.44 per cent in August 2019. This was the lowest growth recorded during both months in the past six years. India exported readymade garments worth $1.260 billion in August 2019 from across the country; In June, it recorded $1.357 billion worth of exports. The Tirupur apparel cluster accounted for about for 55 per cent of the total trade.

The industry is witnessing the full adverse effect of demonetisation and GST. Around 50 per cent work has come down in apparel units in recent months, as many were layingff workers.

The central government is taking steps like the restoration of Merchandise Exports for India Scheme and other incentives to put the industry on the growth track. But, it needs to establish Free Trade Agreements (FTA) with countries like the US and the European Union, without which Indian units cannot compete with companies in underdeveloped countries including Bangladesh, Vietnam and Cambodia.